Private and Public Institutions Source of Capital Discussion


Choose one question and give me a paragraph answer. 
A?Why do private (companies and corporations) and public institutions (cities, states and governments) use debt to raise capital for their operations? Why are tax revenues not enough to for the public sector? Why are revenues not enough for the private sector? Do you think there is an advantage to use debt for both private and public entities?
B?If the US government does not vote to increase the debt ceiling the Federal Reserve can overstep and create entities that will buy Treasuries from the government and give the government cash. The Federal Reserve is essentially printing money to give the Federal government through printing money and buying Treasuries, eventually the money has to be repaid to the shell entities and the Federal reserve though. Reflect on the problems/benefits you think this will have for our economy.

Explanation & Answer:
1000 words

US government

public institutions

private institution

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